Arizona property taxes rank among the lowest in the United States, carrying an effective rate of just 0.48%. The state’s system is uniquely highly regulated: residential properties are assessed at 10% of their Limited Property Value (LPV), and Proposition 117 strictly caps valuation increases at 5% annually, shielding homeowners from rapid market appreciation (est., Tax Foundation 2026 / U.S. Census ACS 2023).
Arizona property taxes are remarkably low, ranking 12th lowest nationally. With a statewide effective rate of 0.48%, a median-priced Arizona home of $426,000 generates roughly $2,044 in annual property taxes. The system is built on strong taxpayer protections: a fractional assessment ratio (10% for residential), a strict 5% annual cap on valuation increases (Proposition 117), and a constitutional cap that prevents primary property taxes on a home from exceeding 1% of its limited value.
Arizona Dual Valuation and Proposition 117 Caps
Arizona uses a two-tiered property valuation system: Full Cash Value (FCV) and Limited Property Value (LPV). FCV is the assessor’s estimate of market value. LPV is a statutorily constrained value that serves as the legal basis for calculating your property tax bill. By law, your LPV can never exceed your FCV.
Under Proposition 117, approved by voters in 2012, the annual growth of a property’s LPV is capped at a maximum of 5% per year, regardless of how fast market values (FCV) rise. Prop 117 also mandated that both Primary and Secondary property taxes are levied against the LPV, completely shielding homeowners from wild tax spikes during housing booms.
Arizona assesses residential properties at 10% of their LPV to determine “Net Assessed Value.” For example, if a home has a Limited Property Value of $400,000, its Net Assessed Value is just $40,000. Tax rates are then applied to this much smaller number.
Arizona statewide effective rate. On a $426,000 home, expect approximately $2,044 per year at the statewide average. Actual bills depend on your specific primary and secondary district levies (est., Tax Foundation 2026 / Census ACS 2023).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $350,000 | $1,680 | $140 | -$1,470 below avg. |
| $426,000 | $2,044 | $170 | -$1,790 below avg. |
| $600,000 | $2,880 | $240 | -$2,520 below avg. |
| $850,000 | $4,080 | $340 | -$3,570 below avg. |
| $1,200,000 | $5,760 | $480 | -$5,040 below avg. |
Estimates use 0.48% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS 2023.
Primary vs. Secondary Property Taxes
Your Arizona tax bill is divided into Primary and Secondary taxes. Primary taxes fund the general maintenance and operation (M&O) of counties, cities, school districts, and community colleges. The Arizona Constitution imposes a strict “1% Cap” – meaning total primary property taxes on a residential owner-occupied home cannot exceed 1.00% of the property’s Limited Property Value. In fact, the state pays school districts directly (the Homeowner Rebate) to help keep residential primary taxes low.
Secondary property taxes fund voter-approved general obligation bonds, school budget overrides, and special taxing districts (like fire, flood control, and library districts). Secondary taxes are not subject to the 1% constitutional cap, but they must still be levied against the restricted Limited Property Value (LPV) established by Prop 117.
Senior, Widow/Widower, and Disabled Exemptions
Arizona offers a direct valuation exemption for widows, widowers, and completely disabled persons. For 2024 and 2025, qualifying individuals can receive a reduction in their home’s assessed value of over $4,400 (this amount is indexed annually for inflation). To qualify, your total household income must be below $38,843 (or $46,600 with minor children), and the total limited assessed valuation of your property cannot exceed statutory limits.
The Senior Property Valuation Protection program (often called the “Senior Freeze”) is available to homeowners aged 65 and older who have lived in their primary residence for at least two consecutive years. It freezes the property’s Limited Property Value (LPV) for a renewable three-year term, entirely protecting the homeowner from valuation-driven tax increases. For 2025, the income limit to qualify is $47,712 for a single owner, or $59,640 for two or more owners.
Honorably discharged veterans rated as 100% permanently and totally disabled by the VA (due to service-connected disability) receive a 100% total exemption from property taxes, as codified under Proposition 130.
Major County Tax Rates in Arizona
Maricopa County, home to Phoenix and roughly 60% of Arizona’s population, features one of the lowest effective property tax rates in the state at 0.41%. Because of its massive tax base, the county and its cities can keep rates low while still generating sufficient revenue. By contrast, Pima County (Tucson) has historically carried higher rates, averaging 0.65%, due to a smaller commercial tax base and different local budget requirements.
Rural and specialized counties vary widely. Coconino County (Flagstaff) has a very low 0.37% effective rate, offset by higher home prices, while Apache County averages 0.81% due to lower property values necessitating a higher mill rate to fund basic services.
| County | Effective Rate | Annual Tax on $426k Home | Notes |
|---|---|---|---|
| Maricopa County | 0.41% | $1,746 | Largest county (Phoenix metro); lowest rates in the state. |
| Pima County | 0.65% | $2,769 | Includes Tucson; historically highest effective rates among large counties. |
| Pinal County | 0.51% | $2,172 | Fast-growing suburban/rural county between Phoenix and Tucson. |
| Yavapai County | 0.39% | $1,661 | Includes Prescott; very low effective rate. |
| Yuma County | 0.62% | $2,641 | Southwest border county. |
| Mohave County | 0.44% | $1,874 | Northwest region including Lake Havasu City. |
| Coconino County | 0.37% | $1,576 | Includes Flagstaff; lowest effective rate in top 10. |
| Cochise County | 0.64% | $2,726 | Southeast region; higher effective rate on lower home values. |
| Navajo County | 0.52% | $2,215 | Northeast region; tracks slightly above state average. |
| Statewide Average | 0.48% | $2,044 | All owner-occupied properties statewide (Census ACS 2023). |
Recent Tax Legislation (2024-2025)
Arizona continuously refines its property tax laws to protect homeowners and commercial competitiveness. In November 2024, voters approved Proposition 312, a novel law that allows property owners to apply for a refund on primary property taxes for documented mitigation expenses (such as security or cleanup) incurred due to a municipality failing to enforce public nuisance laws. These refunds are deducted directly from the offending local jurisdiction’s state-shared revenue.
In the commercial sector, the state continued phasing down the Class 1 (Commercial/Industrial) assessment ratio, dropping it from 16.5% in 2024 to 16.0% in 2025, which indirectly benefits homeowners by stimulating commercial growth that absorbs the overall tax burden. Additionally, starting January 1, 2025, a new state law prohibits all Arizona cities and towns from levying municipal Transaction Privilege Taxes (TPT) on long-term residential rental leases, providing significant relief to renters.
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). Arizona utilizes a fractional assessment system where residential properties are assessed at 10% of their Limited Property Value (LPV), which is strictly capped from growing more than 5% annually. Because overlapping local primary and secondary levies vary significantly down to the neighborhood level, this calculator bypasses the complex primary/secondary mill levy math to provide a historically accurate effective rate estimate.
What this calculator does not account for:
- The difference between your home’s Full Cash Value (market value) and its Limited Property Value (LPV). For longtime homeowners, the LPV may be significantly lower than market value, resulting in lower taxes.
- Secondary property taxes for specific local bonds or specialized taxing districts (like fire or flood control).
- The State Aid to Education (Homeowner Rebate) exact dollar discount applied to primary school taxes.
How to get an accurate estimate:
- Look up your property’s “Limited Property Value” (LPV) on your County Assessor’s online property record search.
- Apply the 10% assessment ratio to your LPV to find your Net Assessed Value.
- If you are over 65, check if your income qualifies you for the Senior Property Valuation Protection (Senior Freeze) program by contacting your County Assessor before September 1.
Data sources: Statewide effective rate and county effective rates derived from U.S. Census Bureau ACS 2023. Legislative and valuation data from the Arizona Department of Revenue and the Arizona State Legislature.
Return to the National Property Tax Calculator to compare Arizona with other states.
